Portillo's Inc. Reports 6.4% Revenue Growth but Declines in Net Income for Quarter Ended March 30, 2025

Portillo's Inc. reported a revenue increase of 6.4% for the quarter ended March 30, 2025, reaching $176.4 million compared to $165.8 million in the same period last year. The growth was primarily driven by the opening of ten new restaurants in 2024 and a 1.8% increase in same-restaurant sales, which contributed an additional $2.6 million to revenue. However, net income attributable to Portillo's Inc. decreased to $3.3 million from $4.6 million in the prior year, reflecting a decline in profitability despite higher revenues.

The company's operating income rose slightly to $10.4 million, up from $10.1 million a year earlier. Restaurant-level adjusted EBITDA also saw a modest increase, reaching $36.7 million, while adjusted EBITDA decreased to $21.2 million from $21.8 million. The decline in net income was attributed to increased operating expenses, including a 7.3% rise in food, beverage, and packaging costs, and an 8.2% increase in labor expenses, which were influenced by the opening of new locations and inflationary pressures.

Portillo's maintained a total of 94 restaurants across ten states as of March 30, 2025, with plans to open an additional 12 locations in fiscal 2025, focusing on markets outside of Chicagoland, particularly in Texas and Georgia. The company also launched a new loyalty program, "Portillo's Perks," aimed at enhancing customer engagement and driving traffic. This initiative is part of a broader strategy to optimize restaurant operations and improve customer experience.

In terms of financial health, Portillo's reported total assets of $1.5 billion and total liabilities of approximately $1.0 billion, resulting in stockholders' equity of $495.4 million. The company had cash and cash equivalents of $12.9 million at the end of the quarter, down from $22.9 million at the end of the previous fiscal year. The decrease in cash was primarily due to increased capital expenditures related to new restaurant openings and investments in existing locations.

Looking ahead, Portillo's expects to continue leveraging its operational strategies to drive traffic and improve margins. The company plans to focus on enhancing its digital engagement, optimizing restaurant openings, and expanding its presence in new markets. Despite the challenges posed by rising costs, Portillo's remains optimistic about its growth trajectory and the potential for increased profitability in the coming quarters.